S&P Reaffirms Secular Bull (again), Defines New S-T Risk | RJO Futures

December 7, 2016 6:38AM CST

With today's break above 30-Nov's 2214 former all-time high the market has once again reaffirmed the secular uptrend exposing further, indeterminable gains.  As a direct result of this latest spate of strength the 240-min chart below shows that the market has identified Mon's 2179 low as the latest smaller-degree corrective low and new short-term risk parameter this market is now minimally required to fail below to defer or threaten a still-advised bullish policy.  In lieu of at least such sub-2179 weakness further and possibly accelerated gains remain expected.

Emini 240

Emini Daily

Only a glance at the daily log chart above and weekly and monthly log charts below is needed to see that the trend is up on every scale.  Having reached new all-time highs the market has once again exposed an area above the market that is totally devoid of any technical levels of merit.  In effect, there is no resistance .  The ONLY levels of any technical merit currently exist in the form of former 2214-area resistance-turned-support and, most importantly, smaller- and larger-degree corrective lows at 2179 and 2079 that now serve as our new short- and longer-term risk parameters to a bullish policy and exposure.

The market's upside potential is truly indeterminable and potentially severe until and unless the market stems the clear and present uptrend with a confirmed bearish divergence in momentum.  And such mo failures require PROOF of weakness below corrective lows like the ones cited above.

As always and especially in this case where this market is achieving new all-times highs and totally uncharted territory, merely derived technical levels like Bollinger Bands, channel lines, the ever-useless moving averages and even the vaunted Fibonacci progression levels we use often in our analysis are useless in defining resistance .  Such derived levels have never proven to be reliable, objective reasons to buck a clear and present trend, and they never will.

Emini Weekly

These issues considered, a full and aggressive bullish policy remains advised with weakness below 2179 required for shorter-term traders with tighter risk profiles to neutralize exposure and for longer-term players to pare bullish exposure to more conservative levels.  Commensurately larger-degree weakness below 04-Nov's larger-degree corrective low and key long-term risk parameter remains required for long-term players to move to the sidelines.  In lieu of weakness below at least 2179, further and possibly accelerated gains remain expected.

Emini Monthly


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